EXPORT FINANCING IN BRASIL

Abstract

This paper characterizes public and private export credit instruments and presents a recent overview of this market in Brazil. For this, we analyze the “Advances on Exchange Contracts” (ACC), export prepayment operations, BNDES-Exim and Proex with regard to its main operational aspects, the demand profile and the credit demand and supply constraints. One important characteristic of this market, highlighted in this paper, is the close link with international market which influences funding provision for private financing instruments and part of credit demand dynamics that is associated with financial possibilities of gains from external and internal interest rate differential and anticipation of future exchange rate movements. The research is based on interviews information with financial institutions, available data on bank balance sheets, Brazilian Central Bank data and a special tabulation provided by BNDES.